Your Questions Answered Here › Insurance Investment Link Fund
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Jing Kai asked 6 years ago

Hi CF,

Under current Covid-19 situation, can I know which Investment Link Fund are you suggesting to switch to?

Can you please explain more on the investment fund type in the insurance company?

I have Great Eastern and Allianz medical insurance for my family.

2 Answers
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CHING FOO LIEU Staff answered 6 years ago

HI JK, personally switching like these doesn't really bother me, reason being -  No 1 - bonds and equity funds both have dropped, although the former has not dropped as much as the latter. No 2 - when you switch now, you are locking in the losses, if any  No 3 - market always recover, it's just a matter of time. If your insurance is something you are holding on for unforeseeable amount of time, then this becomes a pointless exercise. 
There's no rocket science when it comes to ILP funds, they are either bond or equity fund, and can be either Malaysia focused (local) or overseas focused (China, Asia Pacific, etc)

Jing Kai replied 6 years ago

Hi CF,

I think I should have give you more background from my question, I am actually reviewing my family members insurance that have bought since more than 10 years ago, so we do have at least RM10,000 balance in the ILP medical insurance fund.

Yes I am totally understand that market will recover so I am looking for highest return in long term (more than 10 years), so volatility is not a problem for us. We are also will not withdraw the fund at least for 10 years as well.

Thank you in advance.

Jing Kai

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CHING FOO LIEU Staff answered 6 years ago

Jing Kai, knowing that you understand market recover if just matter of time, volatility is not a problem for you and you have no intention to withdraw anytime soon...
...then what's the problem? 
Conceptually and historically though, equity always outperform bond asset class.
So if you're already in equity funds, you stay put. If you're in bond funds, then you may want to switch to equity funds if you feel the fund prices have dropped enough for you to switch in now :)